The Following Information Is for a Product Manufactured and Sold

question 22

Short Answer

The following information is for a product manufactured and sold by Drake Company:
Sales price per unit: $100Variable cost per unit: $30Total annual fixed costs: $350,000Required:Calculate the contribution margin per unit.How many units must Drake sell to break-even?How many units must Drake sell to achieve a profit of $35,000?

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Definitions:

Whisky Consumption

The amount of whisky that is drunk or used within a specific period by individuals or groups.

Spaghetti Consumption

The quantity of spaghetti consumed over a given period, often used as an indicator in dietary or food economic studies.

Utility Function

A mathematical representation of how different goods or bundles of goods provide satisfaction to a consumer.

Spaghetti Consumption

The amount of spaghetti eaten, often measured in terms of quantity over a specific time period.